Thursday, 27 June 2013

Shareholders in Rubicon Minerals (TSE:RMX) (NYSE:RBY) were assured of the Vancouver-based development company’s plans for its 100 per cent owned 65,000 acre exploration ground in Ontario’s Red Lake district at the annual general meeting (AGM) in Toronto Wednesday, with president and chief executive officer Mike Lalonde emphasizing the project's many positives.

“We’re lowering risk, we’re in a politically safe jurisdiction, we’re fully permitted to 1250 tpd, the project is well advanced and advancing further every day. We have a strong record of consultation with the community at large and first nations, financial discussions on closing this funding gap are well underway and we still remain well funded relative to our peers.”

“Compared to our peers as far as timelines to production and funding gaps, we’re still not where we want to be, but compared to the pack, we’re still out front,” said Lalonde.

The lion’s share of the meeting was concerned with the Preliminary Economic Assessment (PEA) report on the company’s Phoenix Gold project in Ontario's Red Lake district, which had been released the day before the AGM. The report more than doubled indicated ounces from the levels recorded in the previous study issued in 2011.

The new study, based on an updated mineral resource, reflects 116,000 metres of additional drilling carried out since the 2011 resource estimate was issued.

Projected gold production for the life of the mine is now 2.19 million ounces, 18 per cent higher than the previous conceptual production plan, according to Rubicon's statement released Tuesday. Annual projected gold output is 165,300 ounces, which is expected to peak at 242,000 ounces in 2022.

“There’s been a substantial shift in our thinking on the resource: 116,000 additional metres went into the drilling, which is 48 per cent additional drilling on the orebody. That’s provided us more information on the resource, and it was important to get it right. You have to get the resource right to wrap a proper plan around it,” Lalonde said when taking questions from the floor, referring to the fact that the updated resource took longer than initially anticipated.

The meeting took place on a day which saw gold futures fall more than $40 on the Comex, to settle at sub $1,230 levels, a fact that was raised in the meeting, and throws into stark relief the fortuitous nature of Rubicon’s reported per-ounce costs. According to the PEA, the underground project is set for a total cash operating cost estimated at $651 per ounce, or $156 per tonne, with average all-in sustaining costs seen at $845 per ounce. Cash flow from operations, after-tax, is projected at $69 million annually.

Pre-production expenses for the project are expected to come in at $224 million, including a 20 per cent contingency, slightly higher than the prior $214 million estimate in 2011 on account of the new longhole stoping method considered in the latest study. With $118 million in working capital, Rubicon thus faces a funding gap of $106 million.

In response to a question that broached the subject of financing at the meeting, Lalonde said the company was “in discussions” in regards to raising the necessary funding, on which he couldn’t elaborate, but emphasized that the company was not looking at share dilution.

And in response to a shareholder question on the current state of play with Wabauskang First Nation, and the application for judicial review of a production closure plan related to the company's Phoenix Gold project in the region, vice president, general counsel and corporate secretary Glenn Kumoi reiterated the company view that the claims were without merit, and said that in practical terms, it made no difference to work at the site. “It’s business as usual and the project is moving forward.”

In closing, Lalonde emphasized the project upside: “We have an advanced gold project, an experienced management team and we’re lowering risk.”

On Tuesday, the CEO said that while the new results are positive, the company still believes there is room for improvement, with the current figures dubbed as conservative. Specifically, he highlighted that the economic model is "very sensitive" to grade, saying that a small increase in grade would be significant, with a 10 per cent boost leading to an almost 30 per cent increase in after-tax net present value.

Shares in Rubicon were trading up on the TSX, reaching as high as $1.32 per share from a close of $1.25 the previous day.

Gold Resource Corporation (NYSE MKT:GORO) has declared its June dividend if 3 cents per share, payable on July 23, to shareholders of record as of July 11.

The U.S.-based gold producer, with operations in the southern state of Oaxaca, Mexico, is calling for production of between 80,000 and 100,000 ounces of gold equivalent this year. The company has returned more than $85 million to shareholders in monthly dividends since declaring commercial production in July 2010.

Earlier this month, the company said it drilled new mineralization around 500 metres northeast of the Arista vein system in Mexico. The step-out hole cut 2.2 metres of 12.91 grams per tonne (g/t) gold and 410 g/t silver. This was within an intercept measuring 15.5 metres wide and averaging 2.95 g/t gold. The structure is one of several parallel to the Arista deposit that the gold miner is targeting with its ongoing drilling.

This followed news of more high grade gold and silver drill results from its Arista deposit in Mexico, with the company drilling 4.7 metres of 3.1 grams per tonne (g/t) gold and 2,658 g/t silver. The results were from vein Splay 5 at the deposit, a new zone that was announced in March this year. The company is continuing to explore this vein as well, with the area now having been drilled over 250 metres vertical extent, with mineralization remaining open along strike and at depth.

Montero Mining and Exploration (CVE:MON) has moved another step closer to production in the development of its rare earths project at Wigu Hill in Tanzania, as it said Thursday it has been granted an environmental impact assessment (EIA) certificate - part of the requirement for a mining license application.

The EIA certificate from the Tanzanian government was issued to fulfill section 92(1) of the Environmental Management Act in the country.

"The approval from the Minister of State, Vice President's Office - Environment in Tanzania is a significant milestone that will allow the advancement of the Wigu Hill rare earth project to a mining stage following the grant of a Mining Licence," said president and CEO Dr. Tony Harwood in a statement Thursday.

"In addition, the due diligence process with a "Strategic Investor" announced in December 2012 is ongoing and progressing well. The "Strategic Investor" has proposed to provide equity funding at project level towards the development of Montero's Wigu Hill Rare Earth Element mine and refinery."

Montero's main Wigu Hill rare earth element (REE) deposit in Tanzania, which is 81 per cent owned by the company, is a steep hill that is 250 metres above sea level, 550 metres above the surrounding coastal plain, with the highest peak at 796 metres above sea level.

The project is located about 65 kilometres south of Morogoro and 200 kilometres southwest of Dar es Salaam in southeastern Tanzania. It covers a 142 square kilometre area and grab samples have yielded results as high as 27.25% total rare earth oxides, with up to 16.68% from drilling.

The junior explorer's plan is to fast track a portion of the large deposit to the mining and production stage, but Montero believes that with a more comprehensive drilling program, it can expand mineral resources from the current 3.3 million tonnes to well above 40 million tonnes.

As a result of its fast track strategy and its decision not to focus on expanding resources, Montero has become one of the first juniors to produce samples of individual and mixed oxides, making it attractive to potential funding partners and positioning it ahead of the pack.

As a result of Montero already being able to produce a mixed rare earth concentrate and individual oxides, its project has relatively lower metallurgical risk, which allowed it to sign the non binding term sheet with a strategic partner late last year. This agreement followed others inked earlier in 2012 for the project.

The Wigu Hill asset is considered a "look-a-like" to Molycorp's (NYSE:MCP) Mountain Pass project in the U.S. as the REEs are hosted in the mineral bastnaesite, found in carbonatite dikes at Wigu Hill. It also carries high grades of lanthanum, cerium and neodymium relative to the other elements in the deposit.

In addition to rare earths, Montero has phosphate assets in South Africa and uranium assets in Tanzania and Quebec, Canada for sale or joint venture.

Klondex Mines (TSE:KDX) (OTCQX:KLNDF) has announced some outstanding high grade channel sampling results from its Fire Creek gold project in Nevada, which remains on track for initial production starting later this year.

The gold development company, through channel sampling as part of additional exploration drifting and metallurgical sampling on the Vonnie vein, returned results as high as 22,396 grams per tonne (g/t) of gold 74 feet north of the 5400 cross cut. It also returned 20,231 g/t gold 63 feet north of the 5400 cross cut, and 15,891 g/t gold 69 feet north.

Shares of Klondex picked up 1.85 per cent on Thursday, to $1.10 as of 10:15am ET.

The high grade mineralization was found during a program that was designed to follow up on a surface drill intercept that returned 2,910 g/t gold over 1.5 metres last September. Klondex says it is testing the Vonnie vein after each exploration round.

"We are very encouraged by these results. With our team's substantial expertise in narrow vein systems, we expect to be able to minimize dilution while maximizing grade. We anticipate that these grades will allow us to be more selective in our mining process," said president and CEO Paul Huet in the statement Thursday.

The company is working hard at having the next new producing asset in Nevada, with Klondex having the advantage of grade on its side, according to Huet, who made the assurance to investors at the company's annual general meeting last week.

The Fire Creek project is situated at the intersection of the Battle Mountain trend and Northern Nevada Rift, which also hosts the Midas and Hollister narrow-vein epithermal gold deposits. The company is planning to start initial production from bulk sampling later this year, with an updated resource from drilling due this summer, to be followed by a new and comprehensive mine plan.

"The Fire Creek project is an amazing asset. We have the advantage of grade. It's a high class, simple asset that demonstrates some of the best grades you're going to see in the world," said Huet, who came on board at Klondex late last year, making his appearance at the meeting his first presentation to investors.

Indeed, in May, the Nevada-focused company yielded 682 tons of mineralized material at an average grade of 73.8 grams per tonne (g/t) through a metallurgical sampling program, for some 1,400 contained gold ounces, part of the company's strategy to improve margins with its high grades.

"The material has been sent out to a direct smelter, as the grades are so high that putting it into a mill risks a potential loss in recoveries. It's a great opportunity to improve our margins and separate the high grades over 3 ounces that we have," Huet said at the meeting. "It's something we will do for as long as we encounter it to maximize our margins."

He explained that the nature of the deposit allows the mining of selective areas, but more importantly, 75 per cent of the indicated ounces at the deposit remain at a higher cut off grade, something Huet says is an advantage from any operator's standpoint, and one Klondex "will make sure to capitalize on".

Aside from being surrounded by major producers, the property is as expected also proximate to power, transportation, infrastructure and a milling facility in the heart of the U.S. state’s gold trend. Apart from the Rapid Infiltration Basin permit, which has been submitted and is on track for the third quarter, most other major permitting is in place.

The company said Thursday sampling improves its understanding of the structures at the site, and helps identify targets for further drilling. Klondex's chief geologist, Steve McMillin, said in the statement that current drilling continues to confirm the continuity of mineralization as the company moves south along the ramp.

DealNet Capital Corp. (CNSX:DLS) says that its One Dealer subsidiary, which offers financing and other services to HVAC dealers and their customers, has managed to secure a proposal for underwriting capital of $12 million from an unnamed Canadian bank for the consumer financial services arm of the business.

The company, which entered the heating, ventilation and air conditioning (HVAC) market last year, has been developing its One Dealer unit to provide a service offering that includes HVAC equipment financing, wholesale product supply, logistical support and marketing services. The plan was to provide a better customer experience by leveraging call centre time through DealNet's business process outsourcing unit.

In the financial services arm of the One Dealer business, the company said Wednesday that the "competitive" underwriting proposal will serve as the detailed basis for an ongoing relationship. The parties are working to finalize the agreement "as soon as practical".

DealNet said the unit, which manages finance contract origination, procurement and ongoing maintenance, is also in talks with "several other interested financiers", and is expecting to provide further updates as it procures additional sources of capital.

The financing arm has also been granted third party biller status with a utility that operates mainly in Ontario, giving the company the ability to invoice finance and lease payments as well as other One Dealer services on the homeowner's utility bill, guaranteeing more than 99 per cent collection on any payments due, according to DealNet's release Wednesday. This, said the company, creates “significant security” in the retail loan book due the ability to disconnect utility services if bills are not paid.

DealNet also updated investors with respect to One Dealer’s home services arm, saying it has completed the initial development of the One Dealer Home portal, which is designed to aggregate marketing investments made by HVAC dealers to implement a targeted digital media strategy.

A series of HVAC dealer launch events are expected to start next month for One Dealer, which is working closely with what it confirmed as an "established North American HVAC equipment distributor" under a memorandum of understanding agreement. The events will aim to give dealers an opportunity to sign-up for all One Dealer services en masse.

"We are very pleased to provide this update regarding the considerable progress we have made to date and look forward to the launch of these innovative and complementary service offerings near term," said president Bob Cariglia in the statement.

DealNet is a merchant banking company focused on recurring revenue businesses, having recently geared its investments toward the business process outsourcing and consumer financing markets. It said it is continuing to look for acquisition opportunities in these markets.

Shares are trading at 20 cents on the Canadian National Stock Exchange, giving the company a market cap of just over $11.0 million.

The news came as Tarsis provided investors with an update on the property late Wednesday.

The Erika property is located in the Guerrero Gold Belt and covers about 16,000 hectares in Guerrero State, Mexico. The property is accessed by paved road via Federal Highway 95, which crosses the eastern boundary of the claims. Acapulco is 150 km south and Iguala is 47 km north of Erika.

The work to be carried out will be made up of detailed geological mapping and geochemical sampling, with the hope of identifying drill targets that are expected to be tested in the fourth quarter of this year.

According to the terms of the agreement for the property, Osisko must spend $0.5 million on exploration at Erika before February 2014 as part of its earn-in commitment. In order to earn a 51 per cent stake, Osisko must make staged cash payments to Tarsis of $1.0 million, and spend $4.0 million on exploration over four years. Osisko can also boost its stake to 75 per cent if it completes a feasibility study for the project.

Tarsis functions on a prospect generator model, which means it seeks out prospective exploration projects to acquire, and then vends or options them to partners for development. This model has allowed the junior to raise cash in an otherwise tough market.

Indeed, the company has strong backers. Kinross Gold (TSE:K) invested about a year and a half ago, and now has around a 9 per cent stake, while Sprott’s Rick Rule has a more than 10 per cent interest. Almaden Minerals (TSE:AMM) also holds over 10 per cent.

Last October, Tarsis closed a financing for total proceeds of just over $1 million, raising double what it had originally anticipated. Backers in the offering included Sprott, and management, which holds a significant chunk of shares, among others.

RESAAS Services (CNSX:RSS) has said it has signed a deal to power a slate of upcoming conferences with its social networking platform designed for real estate professionals. It will be partnering with Xplode Conference to power events to be held this year in Boca Raton, Beverly Hills, Dallas, Jacksonville and Atlanta.

The news comes just a day after the company said it plans to raise $2 million to meet with demand and expand its platform into Europe.

"We're very excited about our partnership with RESAAS," said Xplode Conference founder, Matt Fagioli. "Social connections with customers and other professionals is a critical piece of real estate networking. In fact, that's a huge understatement. Without a deep network you simply don't win in today's real estate industry.

"RESAAS is onto something really big here and Xplode Conference can't wait to be part of it."

RESAAS, whose social network is designed to allow real-time updating of property listings as well as the ability to sync with social media sites such as Facebook (NASDAQ:FB) and Twitter, is growing steadfast in its popularity, continually adding broker after broker to its platform. Known as real estate broadcasts, RESAAS' reblasts engine automatically generates all of an agency's real estate workflow into social content that is instantly pushed out to the RESAAS platform and other social networks.

At the Xplode events, staff, event attendees, sponsors and speakers will be networked together in a private Xplode Conference group on RESAAS' social network. The private group will be used for the upcoming conferences this year across the U.S., according to the statement.

"The Xplode Conferences are known for teaching agents the latest technologies to help them win business and provides a great place to network with like-minded people," said CMO at RESAAS, Michael St. Hilaire. "Extending that experience into the social world is what RESAAS is all about and we are looking forward to working with Matt and the Xplode team to make it happen."

Last week, RESAAS was picked to power Inman News' upcoming Real Estate Connect conference in San Francisco this July, showcasing the company's increasing popularity in the industry. The news came less than a week after RESAAS was chosen to power the upcoming summit hosted by the Asian Real Estate Association (AREAA) of America in Vancouver next month, and after it was the preferred social networking partner for HousingWire’s Real Estate Expo.

Tethys Petroleum (TSE:TPL) (LON:TPL) is riding a high after wrapping up its farm-out deal with French major Total and China National Petroleum Corp (CNPC) in Tajikistan, with the block having more potential than the entire UK North Sea, according to executive chairman Dr. David Robson, who spoke to Proactive Investors after the announcement last week.

“Based on an independent resource report and the current gas consumption of China, there is enough gas there to supply the Chinese market for around 24 years, assuming gas demand doesn’t increase,” said Dr. Robson.

“There is absolutely enormous oil and gas condensate potential as well, justifying further pipelines being built from Tajikistan into China,” he added.

According to the terms of the farm-out deal, Total and CNPC each now own a one-third stake in the Bokhtar venture, in Tajikistan, while Tethys’s 85% owned Kulob Petroleum subsidiary has the other third. The Tajik authorities have also awarded the partners new acreage - a further 1,186 square kilometres - in the area, and the initial period under the production sharing contract has now been extended until 2020.

Kulob will receive a US$63mln payment for past costs, as well as a ‘carry’ on future work of up to US$80mln. As a result, it expects that it will only have to contribute US$9mln to the 2013/14 work program, the details of which will be “firmed up” in the next month.

“It effectively gives us a carried interest through a program that will enable two very substantial partners to provide the skills and technology to drill successfully into these target zones,” assured Dr. Robson.

The area is an extension of the Amu Darya Basin, which contains some of the world's largest gas and condensate fields. Indeed, the Bokhtar production sharing contract area, excluding the additional acreage given to the partners, is believed to host a massive 27.5 billion barrels of oil equivalent, comprising 114 trillion cubic feet of gas and 8.5 billion barrels of oil.

Exploration plans will be progressed with further seismic acquisition and the locating of deep exploration wells sometime next year to test the potential giant deposits thought to be present in the area.

“The first well will be quite deep, in the order of 7,000 metres. There is a layer of salt that we need to drill under, in very large Jurassic-age, high pressure reefs,” Dr. Robson explained of the plans, adding that the first well would likely cost between $40 to $50 million.

The $9 million that Tethys expects to contribute to the work program is anticipated to cover the company’s costs in the region over the next two years. “Total and CNPC will help us drill what we think will be an extremely large discovery. Shareholders can look forward to this being developed over the next couple of years, and with success, we will make sure we are a much larger company than we are today.”

Dr. Robson is also counting on expanding existing production from Kazakhstan, where the company just announced a busy program for the second half of this year, expected to cost over US$25 million. In August, it will drill the AKD08, or Doto well, after which as many as five shallow gas wells are planned near the Akkulka block. The Kalypso discovery well will also be stimulated and tested in the third quarter, which is located just 50 km from Tethys’ Doris oil discovery. Earlier this year, Tethys extended the Kul-Bas exploration and production contract in Kazakhstan for two more years, which covers the Akkulka contract area and the Kalypso well that has encountered several intervals with hydrocarbons.

Meanwhile, two work-overs are planned for two gas wells on its Kazakhstan properties. The schedule also includes seismic work, with a 2D program over the Kul-Bas block and a 3D campaign on the Akkulka block. According to Tethys, the respective seismic programs will improve the group’s understanding of the sub-surface and better focus the longer term work in the attractive area that has a proved commercial oil and gas system.

“We are drilling quite aggressively to find more oil, with there being a fairly simple pipeline route to tie into China. Any Kazakh discoveries can tie in rather quickly into existing infrastructure,” the chairman said. The company is also expanding the Aral oil terminal to add an additional 12,500 barrels of storage capacity. In Kazakhstan, Tethys updated its gross unrisked recoverable mean prospective oil resources last year, estimated at some 1.23 billion barrels of oil, plus 634 Bcf of natural gas.

And the Central Asia-focused company is not stopping there. As recently as May, the company signed a Protocol of Intent with the Uzbek State oil and gas company, Uzbekneftegaz (UNG), for exploration work in the North Ustyurt Basin of Northern Uzbekistan - the same basin that contains the Doris oil discovery. It has also inked a production enhancement contract for a new oil field named Chegara. Tethys is currently the only Western company operating in the oil and gas sector in Uzbekistan.

Speaking of the North Ustyurt Basin, Dr. Robson said it would likely take until the end of the year to negotiate the contract itself, with the company giving itself a one-year deadline from May. “Uzbekistan is still a little down the road from where Tajikistan is at the moment, as we need to spend some time maturing the assets before bringing them in.”

“It’s not a difficult place to drill. It’s not high pressure and there is some more potential to unravel given the different reservoirs than the Kazakh side of the border,” he said.

So far, Tethys has not disappointed. The company’s strong foothold in Central Asia and the building of a substantial exploration portfolio has paid off. It has cash of between $65-$70 million, and is cash flow positive from production, giving it the ability to meet any possible commitments in the near future.

The company’s oil and gas revenues surged 66 per cent in 2012 to $38.11 million, while it generated US$1.36 million in net cash from operating activities, compared to US$12.56 million used in 2011.

Investors are showing their confidence in the dual-listed oil and gas producer. In Toronto, its stock has surged almost 58 per cent year-to-date, currently sitting at roughly 82 cents. “We’re bringing a blend of oil and gas projects that more shareholders would like to see,” said Dr. Robson.

Brazil-focused nickel explorer Horizonte Minerals(LON:HZM) (TSE:HZM) has set up an £8mln equity facility with investment group Henderson's Darwin Strategic division.

Jeremy Martin, Horizonte’s chief executive, said, while there were no immediate plans to use the facility as the company has a robust cash position, it was important to have additional flexibility over future funding in the current economic climate.

"This agreement also underpins Darwin's support and commitment to Horizonte as we continue to advance our flagship Araguaia nickel project, located south of the world-class Carajas mining province in northern Brazil, through its pre-feasibility study with the aim of developing the next major nickel project in Brazil," he said.

Horizonte’s flagship Araguaia nickel project is moving toward the pre-feasibility stage, with a study expected to be completed next year.

Rambler Metals and Mining (LON:RMM,TSE:RMM) reported a second quarter of profit as its momentum as a commercial producer continues.

Unveiling third quarter results to April 30 - the firm's second quarter as a commercial producer - the gold and copper miner reported a profit of C$193,000 (Q3, 2012: loss of C$381,000) and said the period was notable for a "milestone" breakthrough of the independent 1807 ramp system at its flagship Ming mine. This allows the firm to access high grade copper zones, expected to improve efficiencies at Ming.

Mill production was affected by severe weather in February, and for the three month period Rambler produced 4,996 wet metric tonnes (wmt) of copper concentrate, compared to 4,350 wmt in the previous quarter.

Concentrate produced averaged 28% copper with 7 grams per tonne (g/t) gold and 51 g/t silver, compared to 28% copper with 7 g/t gold and 51 g/t silver in the last quarter.

Milling recoveries for copper and gold improved to an average 92% and 65% respectively (Q2: 88% and 62%).

The period also saw the company finalise a deal for the exclusive rights to explore and develop the Krissy's Buckle gold/copper property located within 40 kilometres of the group's Nugget Pond precious and base metal processing facility.

Mawson Resources (TSE:MAW) says it has discovered a new gold prospect, named Kaita, in the first month of field work at its Rompas project in Finland as the company updated investors on its summer exploration season Wednesday.

The Kaita prospect, it said, is located just 900 metres from the South Rompas drill area, and is made up of 26 surface mineralized sites, of which 11 have visible gold, discovered over a zone striking 415 metres.

Mawson's plan is to maintain its momentum in the exploration program so far, with a company-wide budget of $2.5 million planned for this year. It said 10 local Finnish geologists are currently active in the field.

"We consider Rompas to be one of the most exciting, near surface, high-grade, grassroots gold discoveries," said president and CEO Michael Hudson in a statement Wednesday. "Already, we have seen a great start to our 2013 summer work with another visible gold-bearing surface discovery at Kaita over a 415 metre strike extent, located south and parallel to the known Rompas trend."

The company said that the Kaita discovery, which was made after sampling and laser imaging detection, has not seen surface prospecting on a majority of the area, which extends the Rompas vein trend to at least 6.5 kilometres. According to Mawson's statement, channel sampling has already started at Kaita, with results awaited.

"The continued success in defining gold from surface, outside of the original Rompas discovery zone gives the company great confidence," said Hudson.

"Rompas has the potential, attributes and scale to develop into a significant business and our plan is to maintain exploration momentum towards discovery, with prudent spending to achieve our key aims. With C$5M cash we are in an enviable position to do so and we look forward to continued success over the summer."

The company said Kaita, which Mawson will prioritize to define drill targets over the coming months, is located outside the Natura 2000 biodiversity areas, and has been confirmed by a biologist to contain "low value forest and no significant plant species".

Roughly 80 per cent of Mawson's highest priority targets at Rompas are within European Union-defined biodiversity areas, the company said, where it is not yet permitted to drill. Natura 2000 defined areas cover 30 per cent of Northern Finland, according to the company's release.

The company will not be able to drill in these areas that it holds until Finnish authorities grant a modification of the claim decision. A recent report commissioned by Mawson concluded that at this stage of exploration, a managed program will have no significant environmental effects on the area. Mawson also said that an investigation, expected to concluded at the end of the year, is underway by environmental authorities with respect to its 2010 and 2011 work programs.

"The company has been working with all authorities in a transparent and open manner and strongly believes that all allegations against the company will be refuted when the facts emerge at the end of the investigation, believed to be at the end of 2013," said Mawson on Wednesday.

Mawson's summer work program at Rompas will include an 827 line-km helicopter-borne survey, soil and geochemical sampling, bedrock sampling, metallurgical test work and drilling, which is planned toward the end of the summer after geophyscial and geochemical programs have wrapped up.

The Scandinavian exploration company is entirely focused on its flagship Rompas-Rajapalot gold project in Finland, where drilling has returned an intercept of 6 metres at 600 grams per tonne (g/t) gold.

Soligenix (OTCQB:SNGX), a clinical stage biopharmaceutical company, has put to bed a $7.1 million public offering of its common stock and warrants announced late last week, with a chunk of the funds hailing from a firm linked to billionaire life sciences investor Randal J. Kirk.

The company, which is focused on developing products to treat inflammatory diseases and biodefense threats, issued 6.77 million shares of common stock and five-year warrants to purchase up to 5.08 million shares.

Investors that participated in the offering include an affiliated fund of Third Security, a venture capital firm founded by Kirk, as well as members of Soligenix's management and board. The company said Wednesday that it plans to appoint a Third Security designee to its board.

“We are pleased with this vote of confidence and continued support from our institutional investors including an affiliated fund of Third Security, a venture capital firm founded by R.J. Kirk,” said Soligenix president and CEO Christopher J. Schaber, in emailed comments this morning. “With a strengthened balance sheet, our top priority is advancing our two lead programs in pediatric Crohn's disease with SGX203 and oral mucositis with SGX942, both important areas of unmet medical need.”

Indeed, Soligenix will use the new funds raised to further develop its pipeline of drugs, as well as for general working capital. Its two lead product candidates are its oral BDP treatment for pediatric Crohn's disease, which is currently in a phase 1 clinical trial, and a treatment for oral mucositis, for which the company plans to start a phase 2 clinical study in the second half of this year. Earlier this month, the company received fast track designation from U.S. regulatory authorities for the treatment for oral mucositis, which is seen as a result of radiation and/or chemo in head and neck cancer patients.

The biopharmaceutical company also recently inked a collaboration deal to develop a treatment for melioidosis, an often lethal disease, with Intrexon, which is run by billionaire investor Kirk.

In its biodefense unit, Soligenix is working on its Thermovax vaccine thermostabilization technology. According to the company, for vaccines that are intended for long-term stockpiling, such as for use in biodefense or in pandemic situations, the use of ThermoVax, which has been tested in combination with the company's RiVax and VeloThrax vaccines, can lead to easier storage and the distribution of strategic national stockpile vaccines in emergency situations.

RESAAS Services Inc. (CNSX:RSS) says it will raise up to $2 million through a non-brokered private placement financing, with the new funds to be used mainly for the expansion of its hot real estate social networking platform into Europe.

Indeed, the company's expansion has already taken off in North America, where RESAAS has added a broker several times a month since opening for business at the start of the year, across Canada and the U.S.

"Due to the ever growing request for RESAAS to localize its real estate social platform throughout the major markets in the European Union, RESAAS is pleased to be able to raise capital to meet this demand," said CEO Cory Brandolini in a statement late Tuesday. "Raising capital to accelerate our services globally has been very much a part of our growth strategy."

The units, at a price of $1.10 apiece, will be offered to a select group of "accredited individuals and institutions", and will be made up of one common share and one half share purchase warrant. Every warrant will be exercisable at a price of $1.50 each for a period of 18 months after closing.

RESAAS, whose social network is designed to allow real-time updating of property listings as well as the ability to sync with social media sites such as Facebook (NASDAQ:FB) and Twitter, is growing steadfast in its popularity, continually adding broker after broker to its platform.

Known as real estate broadcasts, RESAAS' reblasts engine automatically generates all of an agency's real estate workflow into social content that is instantly pushed out to the RESAAS platform and other social networks.

The company just added Chicago-based real estate brokerage, Elan Realty Group, to its social networking platform and Michigan-based Robinson Realty & Management Group, as the company continues to gain traction in the Eastern U.S.

The social network has already proved popular with real estate agencies in the West, adding such names as Southern California-based Summit Realty Group, Star Real Estate, Modern Realty, Vernazza Realty, Parker Properties, OC Homes Realty, Century 21 Showcase and Century 21 Adobe Realty -- all in California, to name a few.

Last week, the company was picked to power Inman News' upcoming Real Estate Connect conference in San Francisco this July, showcasing the company's increasing popularity in the industry. The news came less than a week after RESAAS was chosen to power the upcoming summit hosted by the Asian Real Estate Association (AREAA) of America in Vancouver this July, and after it was the preferred social networking partner for HousingWire’s Real Estate Expo.

And it was also just named among the top 50 real estate tech solutions by HousingWire.

Shares of RESAAS have rallied more than 43 per cent so far this year, closing Tuesday at $1.29 on the Canadian National Stock Exchange, with a market cap of more than $36 million.

The 1806 zone (1,020 ft) also threw up positive results and selective mining at this zone has resulted in a stockpile of 11,135 tonnes of material which will now be processed through the hydromet facility at Ming while the copper concentrator is offline for planned maintenance.

This is something analyst Welch says will further bolster the firm's cash flows.

"This strategy proved to be fantastically successful the last time the company used its plant in the gold-only configuration.

"Rambler has a rare type of plant that allows it to switch between copper and gold focused production configurations.

"The last batch of gold production had a cash cost of approximately C$1,000 an ounce suggesting that Rambler will be able to make a decent profit even in this suppressed gold price environment."

The analyst highlighted that Rambler's latest drill figures demonstrate the opportunity to bolt-on high grade reserves to its producing zones - something Rambler is set on achieving this goal in the short term.

"Understandably the market’s focus is on cash flow and profitability. Rambler has stated that it is performing well in the current metals price environment, no doubt shielded to a large extent by the high grade nature of its ore," he added.

Tuesday, 25 June 2013

Rubicon Minerals (TSE:RMX)(NYSE MKT:RBY) has unveiled its new preliminary economic assessment report for the F2 gold system on its Phoenix Gold project in Ontario's Red Lake district, taking a crucial step forward in developing the property and increasing the projected gold output from the prior report in 2011.

The project, under a base case scenario using a US$1,385 per ounce gold price, is estimated to have an internal rate of return of 27 per cent and a net present value of $531.0 million at a 5 per cent discounted rate, both on an after-tax basis.

The newest study was based on an updated mineral resource, which reflects 116,000 metres of additional drilling since the last resource estimate two years ago.

Shares of Rubicon picked up more than 5 per cent in early deals, trading as high as $1.45 on Tuesday.

"My primary objective when I took the leadership role at Rubicon was, and remains, building our flagship Phoenix GoldProject to be the best that it can be," said president and chief executive Michael A. Lalonde, who came into the lead role in January, in a statement.

Projected gold production for the life of the mine is now 2.19 million ounces, 18 per cent higher than the previous conceptual production plan, according to Rubicon's statement released Tuesday. Annual projected gold output is 165,300 ounces, which is expected to peak at 242,000 ounces in 2022.

The underground project, which will be mined primarily through longhole stoping -- a different method than the one considered previously -- at a daily throughput rate of 1,900 tonnes per day, is seen to have an average life-of-mine cash operating cost of just $629 per recovered ounce, or $151 per tonne. Including a 1.5 per cent royalty payable to Franco-Nevada Corp, the total cash operating cost is estimated at $651 per ounce, or $156 per tonne.

Average all-in sustaining costs are seen at $845 per ounce, quite a feat in this market that has seen gold prices on the decline. Cash flow from operations, after-tax, is projected at $69 million annually.

Pre-production expenses for the project are expected to cost $224 million, including a 20 per cent contingency, slightly higher than the prior $214 million estimate in 2011 on account of the new longhole stoping method considered in the latest study.

The new report was based on an updated mineral resource, which more than doubled indicated ounces to 1.129 million ounces of gold, in 4.12 million tonnes grading 8.52 grams per tonne (g/t), using a 4.0 g/t cut off grade. Inferred resources are estimated at 2.219 million ounces, within 7.45 million tonnes grading 9.26 g/t gold. Mineralization remains open along strike and at depth, the company said, with Rubicon identifying areas into which it can expand the resource.

"We are very pleased with the results of the updated mineral resource and the New PEA, which demonstrates that the project has the ability to generate strong cash flow," said Lalonde.

"The updated mineral resource estimate exhibits significant improvement in continuity and greater horizontal thickness over the previous mineral resource estimate, making it easier to plan and schedule future potential mining," he said, referring to the average horizontal thickness of 7.8 metres in the newest resource.

"We improved the confidence of the block model and increased the indicated mineral resources by 111% through our successful infill drilling program."

The CEO added that while the new results are positive, the company still believes there is room for improvement, with the current figures dubbed as conservative.

"An estimated inherent internal dilution of 26% was included within the stope design envelopes used to develop the conceptual mine design. An additional 15% external dilution was applied to the conceptual mining model, compared to 18% in the 2011 PEA, to best ensure that the estimated grades are achievable once we commence potential production," Lalonde explained, saying the company chose to take a cautious approach and set targets it can "confidently achieve".

Rubicon also highlights that the economic model is "very sensitive" to grade, saying that a small increase in grade would be significant, with a 10 per cent boost leading to an almost 30 per cent increase in after-tax net present value. The company sees potential upside opportunities with respect to grade, as it said initial bulk samples returned higher grades than those seen in the latest mineral resource report completed by SRK Consulting.

The project is on track to start gold production in the second half of next year, subject to financing. The company still needs to make a production decision, however, based on additional technical studies, and requires amended permits for the increased production rate. It is also still in discussions with local communities.

Rubicon currently has working capital of $118 million, saying it is now in negotiations with third parties to secure non-equity funding of another $106 million. Two investment banks have been signed on as advisors to help with this process.